More than 200,000 US financial advisors could soon start to recommend Bitcoin even though up to last week, BTC investments were not considered mainstream enough for plenty of them so let’s learn more about it in our latest Bitcoin news today.
The US SEC approved two Bitcoin futures ETFs last week and cemented the asset class among the institutional investors so now they can go get exposure without having the technical knowledge. The financial advisors can recommend bitcoin or a proportion of the client portfolios to BTC as well. Microstrategy CEO and BTC bull Michael Saylor commented that there are over 200,000 financial advisors in the US that are managing more than $100 trillion in wealth and they are now even more likely to include BTC as they also earn fees on it.
There are approximately 218,000 financial advisers in the United States managing assets in excess of $110 trillion, and as of this week they can allocate client assets to #Bitcoin via ETFs which integrate with their business model & information systems.https://t.co/Ezc7A2nW2C
— Michael Saylor⚡️ (@saylor) October 23, 2021
Late last week, the WSJ published a new article that got into the narrative for the bullish sentiment of financial advisors and cited a Bitwise Asset Management survey where 81% of financial professionals said that the clients asked about investing in crypto over the past year which only shows a clear demand being on the rise. The head of Flourish, Ben Cruikshank commented that the financial advisors feel the need to offer things clients are looking for even though it makes them uncomfortable.
The new service from the online brokerage company interactive Brokers Group enabled the financial professionals to trade BTC last week and many more will be opening the gates for the asset. The company acts as a custodian, record maintainer, and more, working with more than 5000 advisers and $60 billion in client’s assets. The new service will allow advisors to purchase crypto for their customers and include it alongside traditional investments like bonds and stocks. They can also earn more fees from providing these services.
Caution was advised once again against anyone that is trying to sell one new ETF which offers futures contracts but not the asset itself. ProShares and Valkyrie purchase contracts based on the market prices at the time but don’t custody physical BTC as the companies like Grayscale do. With that said, the ProShares fund broke a number of trading volumes a week ago and it was the first fund to reach $1 billion in assets under management in two days, generating $1 billion in volume on day 1. BTC prices were still cooling from the last week ATH and traded at around $62,000 at the time of writing. More demand from financial advisors can be quite bullish over the long term as the institutional investors are less likely to sell in a high volatility market.
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